Introduction to IOSCO
IOSCO short for, The International Organization of Securities Commissions, is a global body that encompasses all the securities regulators of the world. For the securities sector, it is a global standard setter. IOSCO implements develop and promote obedience to standards that are recognized internationally by all securities regulators. The global regulatory reform agenda works comprehensively and in coordination with the FSB (Financial Stability Board) and G20. It is headquartered in Spain (Oquendo 12, 28006 Madrid). You can also call on + 34 (91) 417 55 49 or fax on + 34 (91) 555 93 68. Its email ID is email@example.com and its website is https://www.iosco.org and was founded in April 1983 and currently (April 2022) it has 233 members.
Geographical influence of IOSCO
There are 3 categories of members. The ordinary, the associate, and the affiliate. With more than 130 jurisdictions, its members regulate more than 95 % of the global securities market. Ordinary members account for nearly 75 % of emerging markets. Endorsed by FSB and G20 are IOSCO’s principles and objectives of securities regulation. Core principles that direct IOSCO is consistent standards of regulation, execution of globally known standards, the advance of needed standards, enforcement, and overseeing. On basis of evaluation by IOSCO in the securities sector, IMF and World Bank conduct FSAPs (Financial Sector Assessment Programs ).
IOSCO seeks to build a strong and forceful global regulatory framework and global capital market. To its members and other regulators throughout the world, IOSCO provides high-quality education, technical assistance, training, and research analysis.
There are 3 key purposes that IOSCO is working on
1.) Protecting investors
2.) Reducing systemic risk.
3.) Ensuring that securities markets are transparent, fair, and efficient.
An online self-assessment questionnaire has been evolved to help, improve, progress, and assist IOSCO members to fine-tune their regulatory standards.
IOSCO alerts portal
Warnings and alerts are received about unauthorized investment services providers to IOSCO on this portal by the members in their jurisdiction. Warnings and alerts of firms falsely claiming to be associates of authorized firms are displayed. Similarly, warnings and alerts are received from authorized firms if their name or near-similar names is been used by unauthorized firms.
Additional information that is given by IOSCO members.
All IOSCO members are provided with lists of wrongdoers voluntarily. The responsibility of warning and alert content provided rests on the members issuing it. The subject of most of the warnings and alert is regarding manipulation or fraudulent practices. Malpractices like market manipulation, misrepresentation of material information, insider trading, offer or sale of securities/derivatives, registration of issuance, collective investment schemes. Unauthorized investment and brokers, trading advisers, dealers, and transfer agents. Markets, exchanges, clearing and settlement entities, etc.
The regulating country regularly updates its black-listed new entities and scam websites proposing nonconforming and uncharacteristic investments to investors in their country without being authorized to do so on the IOSCO portal. This can be viewed by any member or investor.
The UK government has come up with a good idea wherein the general public can also report unauthorized firms. On the UK official site, https://www.fca.org.uk/ you can report any unauthorized firm or you can contact their consumer helpline number on 0800 111 6768 in case you are approached by any scam firm/individual.
To protect yourself be cautious when you get an unexpected email, call, or text message. Do not come under scammer’s pressure to act quickly. Never give any bank information if you do not know the person. Double-check contact details and the URL of the firm you may have accidentally clicked. Do not give any access to your device for downloading Apps or software. As the saying goes “Prevention is always better than cure”. Also, if you are a victim of a scam, file a complaint as soon as possible.